United Auto Group, Inc., an automotive

specialty retailer, announced record results for fourth quarter

2002 including double-digit growth in revenues, income and earnings

per share, before one time items.

According to the company, the record results were driven by increases in same store service

and parts and finance and insurance revenues of 7.6 percent and 8.4 percent,

respectively.

Fourth quarter revenues increased 24 percent to a record $1.9 billion.

Excluding one time items, income and earnings per share from

continuing operations increased 25 percent and 10 percent to $13.9 million and

$0.34, respectively. Including the impact of one time items and

discontinued operations, net income and earnings per share were $0.7

million and $0.02 per share, respectively. Earnings per share reflect

a 15 percent increase in weighted average shares outstanding.

For the twelve months ended December 31, 2002, revenues increased

27 percent to $7.4 billion. Excluding one time items, income and

earnings per share from continuing operations increased 70 percent and 41 percent to

$74.8 million and $1.82, respectively. Including the impact of one

time items and discontinued operations, net income and earnings per

share were $62.2 million and $1.51 per share, respectively. Earnings

per share reflect a 20 percent increase in weighted average shares

outstanding.

Chairman Roger Penske commented, "I am pleased UnitedAuto was able

to meet the challenges presented in the fourth quarter 2002. Compared

with the industry record 2001 fourth quarter, same store new retail

revenues declined by 1.6 percent versus an overall industry decrease of 10 percent,

and same store used retail revenues declined 5.3 percent. Despite these

modest declines, overall same store retail gross profit increased 3 percent

as a result of the outstanding performance of our service and parts

and finance and insurance operations. The capacity expansion provided

by our facility investment program contributed to the 7.6 percent increase in

same store service and parts revenues. I believe we will see continued

expansion of this portion of our business in the future. In addition,

our margin on the service and parts business continued its steady

growth, increasing 2.3 percentage points during the fourth quarter to

47.6 percent. As we move into 2003, we expect to earn $1.96-$2.06 per share,

with first quarter earnings of $0.35-$0.40 per share. Our estimates

are based upon 41.2 million weighted average shares outstanding and

same store retail revenue growth of 2 percent to 4 percent."

President Sam DiFeo stated, "Our business exhibited its resiliency

during the fourth quarter. We demonstrated that our diverse revenue

streams provide protection against declines in the retail sales of new

and used vehicles. I continue to believe that our focus on customer

satisfaction will drive growth in all elements of our business as we

strive to continue increasing market share in all of our markets."

During the fourth quarter of 2002, UnitedAuto settled certain

long-term contracts in conjunction with a streamlining of its western

regional structure. These contracts were related to acquisitions made

in 1996. The company says it also determined that a non-compete agreement with

a former member of management has no future value. Accordingly, the

company recorded a $13.6 million ($0.33 per share) after-tax charge

relating to these contracts.

The company also announced the signing of a definitive agreement

to acquire the INSKIP Autocenter in Warwick, Rhode Island. INSKIP

represents nine brands, including Acura, Audi, Bentley, BMW, Infiniti,

Lexus, Mercedes-Benz, Porsche and Volvo, with estimated annualized

revenues of $300 million. The transaction is subject to customary

conditions and is expected to close early second quarter 2003.

UnitedAuto, which has pursued a strategy based on internal growth

from its existing dealerships, as well as from strategic acquisitions,

operates 129 franchises in the United States and 71 franchises

internationally, primarily in the United Kingdom. UnitedAuto

dealerships sell new and used vehicles, and market a complete line of

aftermarket automotive products and services.